Note 8 – Business Concentration and Risks

Major customers

One customer accounted for 43% of the total accounts receivable as of December 31, 2023, and this customer accounted for 22% of the total revenue as of December 31, 2023.

Four customers accounted for 11% of the total accounts receivable as of December 31, 2022, and those customers accounted for 49% of total revenue for the year ended December 31, 2022.

Major vendors

No major vendor accounted more than 10% of total purchases during the year ended December 31, 2023, One vendor, Tianjin Guanglee, accounted for 65% of total accounts payable as of December 31, 2022; and this vendor accounted for 22% of total purchases during the year ended December 31, 2022. Of subsequent note, Tianjin Guanglee was once owned by the Chief Executive Officer, as fully disclosed in our annual report in 2017. In 2018, the Chief Executive Officer transferred ownership of the entity to an unrelated third party in a transaction not considered a related party transaction per the relevant guidelines.